Malaysia E-Commerce Bill: What Online Sellers Should Know
What Malaysia's E-Commerce Bill from Budget 2027 is meant to do, what is still unknown, the online selling rules that already apply, and how to prepare.
Malaysia’s E-Commerce Bill is a new law the government says it will table at the next Parliament sitting. Prime Minister Anwar Ibrahim announced it in Budget 2027 on 9 October 2026 to make online platforms and sellers more accountable, curb unfair competition from unregulated foreign e-commerce operators, and protect local MSMEs. The text is not public yet, so the bill creates no new duties today. Sellers should start with the rules that already apply.
We will update this post when the bill is tabled. For the rest of the budget, see our Budget 2027 guide for SMEs.
What has been announced about the E-Commerce Bill?
KPDN began studying a new e-commerce law in April 2024. These are the public statements we found:
| Date | Who | What was said |
|---|---|---|
| 17 Jul 2025 | Armizan Mohd Ali, Domestic Trade and Cost of Living Minister | The bill was expected in Parliament’s first session of 2026. KPDN cannot regulate foreign platforms with no physical presence in Malaysia |
| 25 Jun 2026 | Armizan, in the Dewan Rakyat | KPDN is studying extraterritorial reach and requiring overseas entities to follow Malaysian law or appoint local representatives |
| 19 Sep 2026 | Armizan | The Electronic Commerce Act 2006 will be repealed and replaced. Drafting is to be finalised this year, then a regulatory impact assessment. Platform licensing is under study |
| 23 Sep 2026 | Teo Nie Ching, Deputy Communications Minister | MCMC can already license platforms but is waiting for the ministries to set the terms. The work is “not just targeting Pinduoduo” |
| 7 Oct 2026 | MCMC | Met Grab, Lazada, Facebook Marketplace, Pinduoduo, Shein, Shopee and TikTok Shop with enforcement agencies. Platforms are expected to strengthen seller identity checks |
| 9 Oct 2026 | Anwar Ibrahim, Budget 2027 | The bill will be tabled at the next parliamentary sitting |
One measure on foreign sellers already exists. Since 1 January 2024, a 10% sales tax has applied to low value goods, meaning items sold for RM500 or less and brought into Malaysia. Sellers and marketplaces, local or foreign, must register once those sales exceed RM500,000 in 12 months. Local retailers say they still cannot match the ultra-low prices on cross-border platforms.
What is not yet known?
- The text. No draft has been published, so the definitions of platform and seller are unknown.
- Who gets new duties. Nobody has said whether small sellers, social commerce sellers or own-website sellers will be affected.
- Licensing and enforcement. Whether platforms will need a licence, which agency enforces the law, and the penalties.
- Dates. When the next sitting is, when the law starts, and whether there is a transition period. The target has slipped before, from the first session of 2026.
What rules do online sellers follow today?
The 2024 e-commerce regulations
The Consumer Protection (Electronic Trade Transaction) Regulations 2024 came into force on 25 December 2024 and revoked the 2012 regulations that many guides still cite. They cover anyone who trades or advertises through an online marketplace, defined as any electronic trade platform run by a supplier. Apply them to your own website as well as your marketplace listings.
You must disclose:
- Your name or company name, and your website address, if any.
- Your email address and telephone number.
- Your business address.
- The main characteristics of each product or service.
- The full price, including delivery, taxes and any other cost.
- Your payment methods and terms of sale.
- The estimated delivery time.
- Certification that the product meets the safety and health standards set by the relevant agency, where one applies.
You must also let buyers correct errors before or after they confirm an order, acknowledge each order without undue delay, pay for re-delivery if goods are materially different or defective, and keep transaction records. Disclosures must be in Bahasa Malaysia, and other languages may be added. Breaking any provision is an offence under the Consumer Protection Act 1999.
Marketplaces must check your disclosures before you can sell, offer buyers a complaints channel, and keep your details, including your company registration number, for three years.
In June 2025, KPDN deferred enforcement, most visibly of the Bahasa Malaysia listing rule, to a date to be announced. We found no new date as of October 2026. The regulations are still law.
The 2024 data protection amendments
The Personal Data Protection (Amendment) Act 2024 added duties for any store that holds customer data:
- Breach notification. Since 1 June 2025, you must report a data breach to the Personal Data Protection Commissioner within 72 hours, under the Commissioner’s guideline. If it is likely to cause significant harm, you must also tell affected customers within seven days of that report. Failing to notify can bring a fine of up to RM250,000, up to two years in jail, or both.
- Data protection officer (DPO). Since 1 June 2025, you need a DPO if you process personal data of more than 20,000 people, sensitive data (including financial data) of more than 10,000 people, or carry out regular and systematic monitoring, such as online behaviour tracking.
- Higher penalties. Breaching the data protection principles now carries a fine of up to RM1 million, up to three years in jail, or both.
A store with more than 20,000 customer records needs a DPO, however small the business.
How should online sellers prepare now?
| Area | What to do now | Rule behind it |
|---|---|---|
| Seller identity | Show your name, address, email and phone on your store and marketplace profiles | 2024 e-commerce regulations |
| Product pages | List the main features and any required safety certification | 2024 e-commerce regulations |
| Pricing and terms | Show the full price with shipping and taxes, payment methods, terms of sale and delivery estimates before payment | 2024 e-commerce regulations |
| Checkout | Let buyers edit orders, and send an order confirmation automatically | 2024 e-commerce regulations |
| Language | Add Bahasa Malaysia versions of your disclosures | 2024 e-commerce regulations (enforcement deferred) |
| Records | Keep order and transaction records for at least three years | 2024 e-commerce regulations |
| Customer data | Count your customer records, appoint a DPO above the threshold, and decide who reports a breach within 72 hours | PDPA amendments |
| The bill | Watch KPDN and Parliament for the published text | E-Commerce Bill |
Patching your store software lowers the risk of a breach you would have to report. Our website maintenance guide lists what to check and how often.
If most of your sales come from one marketplace, new platform rules will reach you through that platform first. Our ecommerce platform and ecommerce website design services cover running your own store alongside Shopee and Lazada.
Frequently asked questions
When will the E-Commerce Bill be tabled?
The government says at the next parliamentary sitting, but it has not given a date. In September 2026, the minister said drafting would be finalised by the end of the year.
Are the 2012 e-commerce regulations still in force?
No. The Consumer Protection (Electronic Trade Transaction) Regulations 2024 revoked them on 25 December 2024. The 2024 rules still require seller disclosures and order acknowledgements, and add a Bahasa Malaysia requirement and duties for marketplaces.
Will the bill target Temu, Shein or Pinduoduo?
The bill has not been published, so it names no platform. In September 2026, the deputy communications minister said the platform rules being prepared apply to all e-commerce platforms.
Does my small online store need a data protection officer?
Only above a threshold: personal data of more than 20,000 people, sensitive or financial data of more than 10,000 people, or regular and systematic monitoring, such as behaviour tracking.
Want your store checked against these rules, or planning your own store for 2027? Talk to us.
Sources: Free Malaysia Today, Funding Societies, The Star, 9 October 2026, The Star, 7 October 2026, The Star, 19 September 2026, RTM, Lowyat.NET, Bernama, 25 June 2026, Skrine, P.U. (A) 449/2024 via KPDN, Marketing-Interactive, PDP Commissioner FAQ, DLA Piper, Shearn Delamore and BDO, checked October 2026.